I love my father, but I can certainly tell you that Dad and technology do not mix.

And at 76-years old, he is especially vulnerable to attacks known as a phishing scam.

In the article, I am going to explain what exactly a phishing scam is and how seniors can protect themselves…and also, how caregivers can teach the seniors in their lives so that they do not fall victim.

What Is A Phishing Scam

A phishing scam is an attempt to illegally gain access to your personal and financial information by means of tricking the recipient into thinking that a legitimate company sent the request.

Most commonly you will receive the email which looks like it is coming from a legitimate company, such as…

In the email, you will be asked to “update your information” which is the way that the hacker gets your information in the first place. Things like your name, address, Social Security number and credit card number will be asked for.

Scams On The Rise

A chart on Wikipedia, which I am reproducing below, shows you that these scams are extremely common and that they are on the rise…

The image below is an example of a phishing scam email. I am using it here, and giving credit to Bellevue College for the image, to give you an idea of the features that are in these scams.

No financial institution will ask you to send them your financial information online. If you have a question, call the company directly and ask. Anytime you receive an email requesting that you log into your account, do not click any login links included in the email. Instead go directly to your hosting company and log into your account from there.

Use this tip to protect yourself from phishing scams for ALL organizations.

Never submit confidential information in a form embedded within an email message.

Hold your mouse cursor over the link, but do not click! The page that will open if you click on the link should appear on the mouse hover. Many times the actual link you will see by hovering over it will not match the one listed in the phishing email.

Your hosting company will never ask you to provide your password, credit card number, or other personal information directly through email.

If they ever do request information or action from you, they will, most likely, do so within their support ticket system.

The most secure way to reply is ALWAYS to go directly to your hosting company website, log in, and submit your reply directly from there.

For The Technically Novice Senior

If you are a senior and you don’t understand everything that I laid out, or you are a caregiver who is struggling to try and explain phishing scams to your loved one, here is a simple tip that can help.

When in doubt, never send confidential information to anyone online. Always pick up the phone and confirm anything that is received suspiciously with a representative at the company.

I recently came across this article in the “Motley Fool” that caught my eye. The article, “Why Don’t More People Wait to Claim Social Security at 66?“ seemed to have a simple answer, but it did provide some excellent insights and information into the percentages that claim early, so I was glad I read it.

The 1st unique part of the article was the number of people who actually file early. At this time, even though the “normal” retirement age is 66 almost 1/2 of people file for reduced Social Security benefits at age 62.

The reason people are willing to take a 24% hit on their Social Security earnings (that’s the penalty off of your benefits for filing early)…

keep in mind why the Social Security Administration cuts benefits for early claimers. It’s not to punish them; it’s because people who start collecting benefits early will receive benefits for a longer amount of time.

The article explains it succinctly here…

the average 62-year-old retiree can be expected to live for about 21.4 more years, while the average 66-year-old will live for 18.3 more years. In other words, the 62-year-old is expected to receive Social Security checks for more than three years longer than someone who waits until 66 to claim benefits.

There are also a few other reasons why people take Social Security early…

They need the money. How many Americans are on track for retirement? Very few…

It’s no secret that millions of Americans are underprepared for retirement. In fact, according to the Economic Policy Institute (EPI), almost half of American families have no retirement savings account at all, including almost 40% of those between the ages of 56 and 61.

The average balance of retirement savings within that 56-61 age group is $163,577, which may sound like a lot, but considering that with the oft-used “4% rule” of retirement, this translates to just over $6,500 in sustainable income from savings. Even more scary, the median amount of retirement savings in this age group is just $17,000.

And even if you are on track for retirement, it COULD still be a good idea to take Social Security early an use it as a means of paying for long-term care insurance, where premiums can be in the hundreds of perhaps thousands of dollars a month.

Should I Take It Early or Wait?

While the statistics may seem surprising at first glance, claiming Social Security before full retirement age is a smart financial decision for millions of Americans. On the other hand, there are some valid reasons for waiting, such as being in good health or a history of longevity in your family, or the fact that you’re still working and don’t need the income.

The point is that if you’re trying to figure out the best age for you to claim Social Security, it’s important to consider the points discussed here as well as the overall picture of your life situation and goals.

The positive answer to the question, “can diabetes be reversed” was first revealed in a study done by the University of Newcastle in the UK.

In the study, 11 individuals who were Type-2 diabetics were put on an EXTREMELY low calorie diet…600 calories a day…for 8 weeks.

Now, this is an extremely low calorie consumption level and the study participants were obviously living off of their stored excess body fat (all were overweight when the study was started).

Three months after the study, 7 of the 11 were free from the effects of diabetes, and the other 4 had reduced symptoms.

Here are the particulars on the diet and the results…

Now, what can we take away from this…

1) This diet was medically supervised and approved throughout 2) It was the loss of fat in general, and in particular around the liver and pancreas, that led to the successof reversing diabetes

Action Steps

Unless you are under clear medical supervision no one in their right mind would recommend you consuming only 600 calories daily.

However, I personally believe if you took the approach that I did when I was reversing my own heart disease symptoms that you would probably end up with similar success.

I am not going to repeat myself here, but you can read that article here.

Also, just in case you are saying that when I did this I was younger, I would like you to read the story of Constance Tillet, who at 77-years old took up Crossfit. She had never exercised in her life. But after making the decision to take control of her health started a Crossfit regimen and weaned herself off of 60 pills a day plus insulin injections 4 times a day for her diabetes.

I can only imagine how much money she is saving off of her prescription drugs costs.

This article is provided by Michael Deamicis. A Chartered Advisor for Senior Living® can provide guidance and assistance on a broad range of financial and senior lifestyle topics including: Saving for retirement; Structuring distributions from pensions, 401(k)s, 403(b)s, IRAs, and Social Security; Planning for health & long-term care needs; Developing effective estate planning strategies; Managing life course transitions and living arrangements.

If you wish to contact Michael his information is provided below…

The original reprint of this article can be found here. It is reprinted with permission.

Could someone you love be a victim of elder financial abuse?

Each year, seniors lose over $36 billion to elder financial abuse and more than a third of seniors are affected by financial abuse in any five year period, according to one recent study. This total includes criminal fraud, caregiver abuse, and financial exploitation, where seniors are subjected to high-pressure sales tactics and misleading marketing.

Lawmakers are paying attention. Federal and state governments have begun to pass laws to protect seniors from financial abuse. This is good news. However, these laws often protect a senior only after someone realizes that an elderly person is being exploited. An elderly person can lose a significant amount of their savings before someone close to the senior realizes what has happened.

Red Flags

In order to stop elder financial abuse, is critical that those closest to seniors be on the lookout for possible red flags. As a family member or close friend of an elderly person, you may be in the best position to detect early signs of elderly financial abuse.

You observe a significant change in the senior’s financial habits (such as more frequent or larger withdrawals)

There is the appearance of a new “friend” who is insistently requesting information about the elderly person’s accounts, or who tries to make changes without the senior’s permission. This new “friend” could be an acquaintance, a family member, a health care provider, or even someone the elderly person met on-line.

The new “friend” or family member refuses to let you speak to the elderly person, or insists on being present when you talk with the elderly individual.

You may see questionable signatures on documents, or it may appear that numbers on financial documents have been forged or changed.

You may learn of sudden or unexplained changes in beneficiaries on life insurance policies, or see that there have been unexplained changes of address on an elderly person’s financial statements.

What To Do?

If you see any of these signs, it is critical to act quickly.

There are a number of steps that you can take:

Contact the bank or financial professional who manages the elderly person’s accounts. The bank or financial professional can freeze accounts or take other action. (MassMutual has resources to help its clients with these situations. You can email ElderAbuse@massmutual.com with questions).

Contact the Adult Protective Services agency in your state. Like Child Protective Services agencies, Adult Protective Services agencies are created to protect elderly and vulnerable adults. You can find an office near you here.

Contact your local police department if you believe that the elderly person has been a victim of fraud.

Finally, if the elderly person has another trusted contact such as an attorney or accountant, he or she may be able to help.

Seniors lose approximately $17 billion annually to elder financial exploitation alone. Criminal fraud accounts for $13 billion and caregiver abuse is estimated at $7 billion. Keeping an eye out for red flags of elder abuse can help protect the ones you love.

Can heart disease be reversed? As incredible as it sounds, the answer is an emphatic yes…and there has been multiple peer-reviewed scientific studies that have shown this to be the case.

More importantly, while this article is being geared towards seniors, one of the examples I will be giving in this article is myself…as there was a time several years ago when I was very overweight, out-of-shape and was experiencing constant heart palpitations…at a time in my life when I had no health insurance and could not get myself checked out.

So I write from personal experience here, and often that is the best way to teach…

How I Answered “Can Heart Disease Be Reversed” for Myself

Let’s go back to 2007. At the time I was 60 pounds overweight and lived a sedentary life. Very little movement to begin with and no structured exercise at all.

And it was at this time, when I was at my physical worst, that I started to experience heart palpitations…chest pains. And I can tell you that at age 36, that is not a good feeling to say the least.

So if I can be that bad at age 36, I can only imagine how bad it would be for seniors.

How A Solution Presented Itself

Note: Nothing that I am writing here should be considered a recommendation for you NOT to see a doctor and get checked out. ALWAYS seek out competent medical advice IMMEDIATELY if you are experiencing similar symptoms.

I was at the library one day when just by chance I can=me across a book, a book which literally could save your life.

The book was titled “Eat More Weigh Less“ by Dr. Dean Ornish. And if you were overweight would that title intrigue you?

After taking it out of the library and reading it…while the book is long about 80% of the book was recipes, the science was contained to the first 90 pages or so.

In it, Doctor Ornish outlines how he has cured atherosclerosis, which is the hardening of arteries that leads to heart disease, heart attack, stroke, etc…through lifestyle changes alone!

To me this was stunning. Here was a medical doctor saying that that the answer to “can heart disease be reversed” was an emphatic yes, but that it would be done WITHOUT surgery or medications.

And at the time I didn’t have health insurance as I said, so my philosophy was simple. What did I have to lose?

So I decided to give it a go.

Ornish’s Program

The Ornish program comes down to 3 core principles:

A minimum of 30 minutes of moderate exercise daily (a good power walk would do it)

Yoga and meditation to deal with stress and the spiritual aspects of healing

An EXTREMELY low-fat diet, where no more than 10% of your calories come from fat

In looking at the 3 principles, it’s pretty obvious to see that the first and second are not that bad. The third is the kicker.

Obviously, the third is the key to the program and the most difficult to pull off. But I can tell you from personal experience that when you are concerned about chest pains, it is a hell of a lot easier to have the discipline to eat right than under normal circumstances.

How I Did It

Let me quickly go over the first two. I started going to the gym and got more than the recommended 30 minutes a day of exercise. And I did the yoga for a while but have to admit that it really isn’t “my thing” so I sometimes did my yoga and sometimes didn’t.

To this day I will easily do a one-hour, four-mile power walk but have difficulty keeping the concentration to do even a 30-minute yoga routine.

But when it came to eating, that is the tough part…and let me tell you how I did that.

Semi-Vegetarian

While Ornish advocates a vegetarian lifestyle, I followed what I would describe as being a “semi- vegetarian”. For most of the time, I did eat only vegetables, but the times that I ate meat I made sure it was lean meats and grass-fed varieties as opposed to grain-fed.

As Dr. Ornish said, “If you cannot be a vegetarian, at least you can eat one.”

Pre-Planning Your Meals

There was NOTHING that was more important to me than planning my meals the night before. In this respect I knew…

What I was eating the next day and when

How many calories I was consuming

By reading the nutrition facts label I was able to calculate how many of those calories were coming from fat

And most of all, by planning my meals in advance I was able to avoid the fast food runs that plague us all.

The Results

Well, can heart disease be reversed? I can tell you from personal experience it can. I lost 60 pounds over the course of 6 months and a few months later, had to go to the hospital to have a cyst removed.

When I started to have the preliminary blood work done, the doctors felt it wasn’t necessary to complete most of the tests.

The reason? My results were so good that those remaining tests were unnecessary. It was rare that they came across someone whose cholesterol, blood pressure, A1C levels, triglycerides…the works…were that good.

So while I am definitely suggesting that you go to the doctor and get yourself checked out, you can be rest assured that assured from my personal experience that you can successfully answer the question yourself, “Can heart disease be reversed”.

I often questions about burial insurance for seniors over 85, or over 80, etc…so I wanted to give you some information on what you are buying, where to get the insurance, how much you would be paying, etc…And this is an understandable concern for seniors.

Currently, my Dad is 76 and he has this constant worry that he will be a burden to my brother and I when it comes to his final expenses. Paying for a funeral, even a modest one, isn’t cheap. When Mom passed away in 2015, we had a bill for $6,600 for the following…

The cheapest casket we could find

Laying her out for one day

Cremation

That’s it. She had a life insurance policy that I was paying the premiums on (she was on Medicaid in a nursing home so all of her income went to the nursing home and the government to defray the nursing home costs) and cost for $10,000 of coverage was around $111 every 3 months.

It should be noted that when she got the policy she was 62 years old, so the cost of burial insurance for seniors over 85, 80, 75, etc…will be substantially higher. This is because when you buy life insurance you buy what is known as “units” of life insurance, which means that you buy in $1,000 increments. And as you get older, the amount of a policy per unit goes up.

Advantages of Having Burial Insurance for Seniors Over 85

The biggest advantage by far to having such coverage is peace-of-mind, for both the insured and their family. Both are relieved in knowing that there will be no financial burden when they pass away. This allows the family to rest easy (knowing the family doesn’t have to kick in to pay for the funeral) and also for the insured to know they will not be the cause of a financial burden on their family.

Disadvantage of Having the Life Insurance

By far the biggest disadvantage is the cost. Like I said, the cost are high, even if you are in good health. Because let’s face facts. The average life expectancy is the US currently is 78.74 years. If you are looking for burial insurance for seniors over 85 the insurance company knows you have already beaten the odds and lived longer than 50% of people out there.

And remember the numbers that I gave earlier for my mother’s policy, at age 62. She got a 10-year term policy for $10,000 and the cost was $111 for three months. It would have been around $40 a month.

My point is, if you end up getting a policy at 85 (and that’s normally the cutoff age for any insurance company to get a policy) you would probably be paying in the $100 a month range for the policy, or more, to get enough coverage to cover your funeral expenses. This is a big burden for seniors.

Other Options for Burial Insurance

Unfortunately, at this point in life, age 80 or 85, there really aren’t too many options available. Seniors are done working, not physically able to re-enter the workforce in most cases, and are long past their prime.

And the burial benefit from Social Security is only $255. So besides a burial policy, the only other option unfortunately is to self-insure. This means if you have enough money you put it aside and that cash is used for the funeral costs. This might be a little depressing for the senior, who wants to leave something to their loved one’s. But at the very least they will not have the burden of having to pay for the funeral.

Where to Get Burial Insurance For Seniors Over 85

As I said most insurance companies have the cutoff at age 85 for a life insurance policy. Additionally, insurance companies use your “insurance age” when calculating how old you are. What does this mean?

It means that when you get to 85 years and 6 months, your “insurance age” is 86, which means you can no longer qualify for just about any life insurance policy. So if you think you can wait until a few days before your 86th birthday, think again.

As far as actually getting a policy, there are companies that offer whole life insurance for seniors up to age 85. I have written about the pros and cons of whole life insurance already so there is no need to repeat myself here.

Conclusion

In reality, the best burial insurance for seniors over 85 is actually self-insure yourselves. Barring that, the information I gave on whole life insurance will enable to pick the right policy for you.

So as I read the article, I was far more focused on what President Trump was saying about drug prices than I was about anything else. Here are a few of the tidbits…

“We have to get the prices down,” Trump said. “We have to get the prices way down.”

“We have to get lower prices, we have to get even better innovation, and I want you to move your companies back to the United States,” Trump said. “I want you to manufacture in the United States.”

Trump also said he wanted to make it easier for pharmaceutical companies to win regulatory approval for their products.

“You’re going to get your prices either approved, or not approved,” the president said. “But it’s going to be a quick process. It’s not going to take 15 years.”

Now, if you are someone who is dealing with the high cost of prescription medications, this should come as a godsend to you. Because President Trump hit the nail on the head as to exactly what the problem is with high drug costs.

And that is the FDA-approval process and government-sanctioned monopolies for drug manufacturers.

The article, “The High Cost of Prescription Drugs in the United States – Origins and Prospects for Reform” was written in August of 2016 and hits on some familiar topics. But most important are the conclusions that the study draws at the end of the article…

“Conclusions and Relevance High drug prices are the result of the approach the United States has taken to granting government-protected monopolies to drug manufacturers, combined with coverage requirements imposed on government-funded drug benefits. The most realistic short-term strategies to address high prices include enforcing more stringent requirements for the award and extension of exclusivity rights; enhancing competition by ensuring timely generic drug availability; providing greater opportunities for meaningful price negotiation by governmental payers; generating more evidence about comparative cost-effectiveness of therapeutic alternatives; and more effectively educating patients, prescribers, payers, and policy makers about these choices.”

Read that again and let it sink in for a second. Here are the points that truly pissed me off when reading this…

High drug prices are the result of the approach the United States has taken to granting government-protected monopolies to drug manufacturers

Enhancing competition by ensuring timely generic drug availability

You see, when we complain about the cost of prescription drugs, understand that the prices are so high BECAUSE OF THE GOVERNMENT PICKING THE WINNERS AND THE LOSERS IN THE MARKET. Lobbyists pay politicians to create the monopolies so that only one manufacturer can create a drug for as long as possible. That is why the price skyrockets. There is no reason for the manufacturer to keep prices low if only one company can manufactures a particular drug.

The sad part is that most people, when seeing the high prices, then want INCREASED GOVERNMENT REGULATION OF THE PHARMACEUTICAL INDUSTRY, not realizing that it is these government regulations keeping the costs up.

So if Trump can succeed in reforming the FDA and streaming not only the approval process of new medications but also increasing the amount of generic medications on the market, then we will see the prices coming down to more manageable levels.

Can I Refinance A Reverse Mortgage? It’s an interesting question, especially in these days of economic uncertainty, especially for seniors. Because with a reverse mortgage seniors (actually anyone over 62) has the ability to convert the equity in their home into cash flow.

Now, because of my involvement with the Long Island Chapter of the National Aging-In-Place Council, I have the opportunity to meet with people in the reverse mortgage industry on a regular basis.

The short answer is yes, but there are a lot of factors to consider as to whether such a refinance is in your best interests.

Can I Refinance a Reverse Mortgage – What Are The Advantages

There definitely are some positive reasons to consider the reverse mortgage. They include…

FHA Limits On Reverse Mortgages Have Changed

Each year, the maximum amount that you can borrow on a reverse mortgage (or any other FHA-insured loan) changes. As I write this in January 2017, the maximum amount of a reverse mortgage is $636,150. 1 So this means that you could potentially qualify for a larger reverse mortgage, meaning that you can get a larger monthly payment from the equity in your home.

Has Your House Appreciated In Value

This dovetails into the first point. If your home has appreciated in value in the last several years, and most of the housing market has been on an upswing over the last 5 years or so, then this MIGHT be a good time for you to consider a reverse mortgage refinance.

Qualifying for a reverse mortgage is based upon age and the equity in your house. Your credit score does not come into play. [For a primer on how reverse mortgages work click here] So the more equity you have the more money you can get from your home.

Interest Rate Drop

This one you need to be careful of. Interest rates have been at historic-lows for years (some would argue decades) in an effort to jump start the economy. So the odds of you benefiting currently from this are pretty steep. Still, it is worth mentioning here.

Get Spouse On Title Of Property

This could be a VERY important point. In order to qualify for a reverse mortgage, ALL persons on title to the property have to be age 62 or more. And with the economy the way it is, many people considering reverse mortgages are taking them younger and younger.

This means that if, for example, a husband is age 62 and a wife is 59, the wife CANNOT be listed on title to the property in order to get a reverse mortgage.

Needless to say, this can create a precarious situation if at any point in the next 3 years in our example something should happen to the husband while the wife is not on title to the property.

In this example, when husband and wife reach age 65 and 62 respectively now would be the ideal time to refinance the reverse mortgage so that both husband and wife can be on title to the property.

Can I Refinance a Reverse Mortgage – Are There Disadvantages

Of course, there are closing costs associated with a reverse mortgage refinance. And if you are refinancing the loan, that means that you are paying these closing costs twice. That is an important consideration. Closing costs for a reverse mortgage are similar to any other mortgage so you need to be careful and consider the benefit vs the costs when you are asking yourself “Can I Refinance A Reverse Mortgage”?

Conclusion

You can refinance it but it might not be in your best interest. That’s why you should speak to a professional who can walk you through the ins-and-outs of the process.

To that end, I am grateful for the insights of fellow NAIPC-member Rick Cashman. If you have any questions about the process above you cam contact Rick at 516-458-7320 or email him at manwithcash@optonline.net. I have known Rick for several years through our mutual involvement with the Aging-In-Place Council on Long Island.

And while I do not know if he can help you, because every situation is different, I can vouch for the man’s character and integrity.

One of the things that seniors think about a lot is life insurance. And the reason is because they do not want to be a burden to their loved ones when they pass. I know from first hand experience as I have had this conversation with my father on more than occasion about the pros and cons of whole life insurance.

You see, many seniors don’t have a lot saved up. This means that if there isn’t enough money to bury them, which is why they are thinking of life insurance, sometimes called “final expenses”. While there have been plenty of articles written about the pros and cons of whole life insurance in general, there haven’t been many written specifically for the senior population.

It is to that end that I wanted to give as much information as possible so that seniors know what they are getting. First and foremost, if you are buying any of the policies you see advertised on TV, like the advertisement below, you are buying whole life insurance…

That commercial with Ed McMahon for Colonial Penn came from 1995 (McMahon died in 2009). More recently, Alex Trebek took over the duties…

How do you know it is whole life insurance? There are a few queues from the commercial…

Policy for those 50 and over

Guaranteed Acceptance

You cost never goes up

Your benefit never goes down

When you hear those, you know you are talking about whole life insurance. Sounds great, right? Well, yes and no. There are some things that you need to know about whole life insurance, even if it might be the only game in town for seniors looking for life insurance.

Why do I say that? Because there are two basic types of life insurance…

Term life insurance

Whole life insurance

(Note: whole life insurance is part of a slew of financial products known as “cash-value” life insurance which have a savings element attached to them. For the purposes of our discussion, however, it is not really that important)

Term insurance is a life insurance policy good for a finite period of time…10 years, 20 years, etc…The policy then expires, like your auto insurance does every year. But the maximum age at which you can get a term life insurance policy is around age 75, depending upon the company. [1] This means that seniors who are in that age range or beyond cannot get a term life policy. Which is why I said earlier that whole life insurance is the only game in town.

But still, you need to know what you are buying, so that’s why it is important to understand the pros and cons of whole life insurance for seniors, and while I am writing this from the perspective of someone in their 80’s or beyond, the pros and cons really do apply to anyone…

Pros and Cons of Whole Life Insurance

Pros

Lifelong Coverage – As the name suggests, you are covered for your entire life as long as you pay the premium, unlike a term life policy which is set to expire after a certain number of years.

Fixed Premiums – the premiums are the same for your entire life, unlike some life insurance policies. For example, an ART (annual renewable term) life insurance policy goes up every single year. With a whole life policy the amount you pay is the same your entire life.

Savings element – there is a savings element to a whole life policy, where an amount builds up over time. However, as I will explain later, this in actuality is a horrible investment so the benefits of the “forced savings plan” are more than outweighed by the negatives (see below)

Tax benefits – there are certain tax benefits to the savings account mentioned above, so the money can grow tax-deferred.

Cons

Confusing – a whole life insurance product adds elements of confusion because it is two products in one. It is the insurance part and the savings part. Term life insurance policies are far simpler because a term policy works like your car insurance. It is insurance if you get in an accident. In the same way, a term policy is protection if you die.

The savings element, which in reality is not your money (more on that in a minute) adds to the level of confusion to a whole life policy.

Expensive – for each “unit” of insurance (a unit = $1000 of coverage) you will pay anywhere from 2x to 10x MORE with a whole life insurance policy than a term policy. So for the younger generation, those in their 20’s to 40’s, a term life policy is FAR more cost effective in taking the money that they saved on insurance and investing the difference.

It’s not your money – one of the most ridiculous things about whole life insurance is the way the forced savings plan is marketed. In the commercials above, you are told that the policies build up “cash value that you can borrow from”.

You are paying 2x-10x more for this insurance policy. And the primary benefit is the “savings plan” that you can then “borrow from”? Wait a minute. If you are paying that much more for the insurance policy and the benefit is the savings plan, isn’t that your money? Why the hell would anyone pay so much for a policy to have to “borrow” their own money? And then pay interest to the insurance company on the money you borrowed from yourself?

Sound confusing? Yes it is. Sound expensive? Yes it is. So why are you paying so much more for a whole life policy per unit over a term policy?

Fees and Commissions – someone has to pay that insurance agent across the table from you, and that person is you. The agent gets about 10x the commission on a whole life policy as opposed to a term policy

So why am I writing about the pros and cons of whole life insurance and not just recommending term insurance? This is what I said earlier. For seniors over the maximum age for a term life policy the whole life insurance policy is the only game in town. But it is still important to know what you are buying…

The beginning of the greatest tax bill in US history starts to come due this year, as the first of the baby boomers hit age 70 1/2 and are required by law to begin distributions from their retirement accounts.

And there is nothing you can do to alleviate this.

Why is this happening?

If you were investing into a retirement vehicle like a traditional IRA, 401k, 457 plan or other tax-deferred vehicle, you had the option of starting to take your retirement savings to live on at age 59 1/2.

Depending upon your situation, most retirees try and let their retirement accounts grow untouched as long as possible.

Just over 22 percent of individuals who owned a Traditional or Roth individual retirement account (IRA) took a withdrawal in 2013. The overall IRA withdrawal percentage was largely driven by activity among individuals ages 70-½ or older owning a Traditional IRA—the group required to make withdrawals under federal required minimum distribution (RMD) rules for IRA owners beyond that age. In contrast, among individuals under age 60, 10 percent or fewer had a withdrawal.

For those at the RMD age, the withdrawal rates at the median appeared close to the amount that was required to be withdrawn, though some were significantly more. For instance, looking at the consistent sample in the EBRI IRA Database, approximately 25 percent of those 71 or older took a withdrawal amount in excess of that required by law for Traditional IRAs.

Interestingly, this MAY be one of the reasons so many people opt to take Social Security sooner. Use Social Security to live on while your nest egg grows. I had written previously about this topic in all honesty had not considered this facet of this.

So with these facts in mind let me go over a few of the common questions seniors would have on this topic…

Q: Is there any way to avoid paying the tax?

A: No, if you are 70 1/2 and have been deferring taxes for anywhere to 40-50 years it is now time to pay the piper. No way around it.

Q: How much do I have to take out?

In the quote above the “required minimum distribution” is mentioned. This is the mandatory amount that must be withdrawn from your account.